ARTICLE · 01 AUGUST 2011

Extended Application Of The Swedish TOGC VAT Exemption

Baker McKenzie

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The Swedish Tax Agency presented on 28 December 2010 a legal position paper (131 623316-08/111) regarding the application of the Swedish transfer of a going concern (TOGC) VAT exemption.

SwedenTax

Mika Punkki

The Swedish Tax Agency presented on 28 December 2010 a legal position paper (131 623316-08/111) regarding the application of the Swedish transfer of a going concern (TOGC) VAT exemption. The Swedish TOGC provision is based on Article 19 of the Directive (2006/112/EC). According to the TOGC provision in the Directive, Member States may consider that no supply of goods has taken place in case of a transfer of a totality of assets or part thereof. In Sweden, however, the TOGC provision has instead been implemented as a VAT exemption.

Previously, the Tax Agency has been of the opinion that only in case of a fully taxable business being transferred could the TOGC VAT exemption be applied. This position was mainly based on a strict interpretation of the wording of the Swedish TOGC provision.

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